Rupee falls 10 paise to 77.78 against US dollar in early trade

The rupee slipped 10 paise to 77.78 against the US dollar in early trade on Thursday as rising crude oil prices and persistent foreign capital outflow weighed on investor sentiment.

At the interbank forex, the rupee opened at 77.74 against the US dollar, then lost ground to bid at 77.78, registering a fall of 10 paise from the previous close.

The rupee on Wednesday closed 10 paise higher at 77.68 against the US currency from its record low.

The rupee is hovering around its lifetime low of 77.78 against the US dollar, keeping in view the strength of the US currency in the overseas market and firming in crude oil prices.

Anil Kumar Bhansali, head of treasury, Finrex Treasury Advisors, said the rupee opened on a bearish note as crude oil traded near $125 a barrel.

“Only RBI is supporting the rupee, while inflows have completely dried up. Foreign portfolio investors (FPIs) continue with sell-mode for equities and buy-mode for US dollar,” Mr. Bhansali said.

Besides, Asian currencies are trading on a weak note, Mr. Bhansali said, adding, “There is no impact of rate hike by RBI on Wednesday as dollar buyers are in abundance.” Global oil benchmark Brent crude futures rose 0.26% to USD 123.90 per barrel.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01% lower at 102.52.

On the domestic equity market front, the 30-share Sensex was trading 163.34 points or 0.30% lower at 54,729.15, while the broader NSE Nifty was trading 41.00 points or 0.25% lower at 16,315.25.

Foreign institutional investors were net sellers in the capital markets on Wednesday as they sold shares worth 2,484.25 crore, according to stock exchange data.